IDEAS home Printed from https://ideas.repec.org/p/fth/wobadi/380.html
   My bibliography  Save this paper

India's Public Distribution System. A National and International Perspective

Author

Listed:
  • Radhakrishna, R.
  • Subbarao, K.

Abstract

Since reducing poverty is one of the major development challenges facing India, the country has introduced a wide range of economic reforms, including a direct anti-poverty program, the Public Distribution System (PDS). This quantity-rationing food subsidy program has contributed to the upward pressures on food prices and ensured access of food to urban consumers. Yet, the findings of this report suggests that the welfare gains of PDS in terms of income transfer were very meager and the impact on poverty and nutritional status minimal. This paper estimates the gains and costs of PDS, assesses the Indian government's recent moves towards a better targeted PDS, and considers various options for reform.

Suggested Citation

  • Radhakrishna, R. & Subbarao, K., 1997. "India's Public Distribution System. A National and International Perspective," World Bank - Discussion Papers 380, World Bank.
  • Handle: RePEc:fth:wobadi:380
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Caballero, Ricardo J., 1990. "Consumption puzzles and precautionary savings," Journal of Monetary Economics, Elsevier, vol. 25(1), pages 113-136, January.
    3. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    4. Nehru, Vikram & Swanson, Eric & Dubey, Ashutosh, 1995. "A new database on human capital stock in developing and industrial countries: Sources, methodology, and results," Journal of Development Economics, Elsevier, vol. 46(2), pages 379-401, April.
    5. David Bunting, 1991. "Savings and the Distribution of Income," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 14(1), pages 3-22, September.
    6. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    7. Hansen, Lars Peter & Singleton, Kenneth J, 1983. "Stochastic Consumption, Risk Aversion, and the Temporal Behavior of Asset Returns," Journal of Political Economy, University of Chicago Press, vol. 91(2), pages 249-265, April.
    8. Reinhart, Carmen M. & Vegh, Carlos A., 1995. "Nominal interest rates, consumption booms, and lack of credibility: A quantitative examination," Journal of Development Economics, Elsevier, vol. 46(2), pages 357-378, April.
    9. Dhaneshwar Ghura & Michael T. Hadjimichael, 1995. "Public Policies and Private Savings and Investment in Sub-Saharan Africa; An Empirical Investigation," IMF Working Papers 95/19, International Monetary Fund.
    10. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters,in: A Theory of the Consumption Function, pages 1-6 National Bureau of Economic Research, Inc.
    11. Pesaran, M. Hashem & Smith, Ron, 1995. "Estimating long-run relationships from dynamic heterogeneous panels," Journal of Econometrics, Elsevier, vol. 68(1), pages 79-113, July.
    12. Hansen, Lars Peter & Jagannathan, Ravi, 1991. "Implications of Security Market Data for Models of Dynamic Economies," Journal of Political Economy, University of Chicago Press, vol. 99(2), pages 225-262, April.
    13. John Y. Campbell & John H. Cochrane, 1994. "By Force of Habit: A Consumption-Based Explanation of Aggregate Stock Market Behavior," CRSP working papers 412, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
    14. Jonathan D. Ostry & Carmen M. Reinhart, 1992. "Private Saving and Terms of Trade Shocks: Evidence from Developing Countries," IMF Staff Papers, Palgrave Macmillan, vol. 39(3), pages 495-517, September.
    15. Clark Reynolds & Wayne Camard, 1989. "Flow-of-Funds and National Income and Product Account Savings Estimates in Latin America," NBER Chapters,in: The Measurement of Saving, Investment, and Wealth, pages 153-184 National Bureau of Economic Research, Inc.
    16. Christopher D. Carroll & Andrew A. Samwick, 1998. "How Important Is Precautionary Saving?," The Review of Economics and Statistics, MIT Press, vol. 80(3), pages 410-419, August.
    17. Christopher D. Carroll, 1991. "Buffer stock saving and the permanent income hypothesis," Working Paper Series / Economic Activity Section 114, Board of Governors of the Federal Reserve System (U.S.).
    18. Dani Rodrik, 1994. "Getting Interventions Right: How South Korea and Taiwan Grew Rich," NBER Working Papers 4964, National Bureau of Economic Research, Inc.
    19. Braun, Phillip A. & Constantinides, George M. & Ferson, Wayne E., 1993. "Time nonseparability in aggregate consumption : International evidence," European Economic Review, Elsevier, vol. 37(5), pages 897-920, June.
    20. Caballe, Jordi & Santos, Manuel S, 1993. "On Endogenous Growth with Physical and Human Capital," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 1042-1067, December.
    21. Nicola Rossi, 1988. "Government Spending, the Real Interest Rate, and the Behavior of Liquidity-Constrained Consumers in Developing Countries," IMF Staff Papers, Palgrave Macmillan, vol. 35(1), pages 104-140, March.
    22. Carroll, Christopher D. & Samwick, Andrew A., 1997. "The nature of precautionary wealth," Journal of Monetary Economics, Elsevier, vol. 40(1), pages 41-71, September.
    23. Campbell, John Y, 1987. "Does Saving Anticipate Declining Labor Income? An Alternative Test of the Permanent Income Hypothesis," Econometrica, Econometric Society, vol. 55(6), pages 1249-1273, November.
    24. Masao Ogaki & Jonathan D. Ostry & Carmen M. Reinhart, 1996. "Saving Behavior in Low- and Middle-Income Developing Countries: A Comparison," IMF Staff Papers, Palgrave Macmillan, vol. 43(1), pages 38-71, March.
    25. Rodriguez, Carlos Alfredo, 1982. "The Argentine stabilization plan of December 20th," World Development, Elsevier, vol. 10(9), pages 801-811, September.
    26. Campbell, John Y. & Mankiw, N. Gregory, 1991. "The response of consumption to income : A cross-country investigation," European Economic Review, Elsevier, vol. 35(4), pages 723-756, May.
    27. Frankel, Jeffrey A, 1992. "Measuring International Capital Mobility: A Review," American Economic Review, American Economic Association, vol. 82(2), pages 197-202, May.
    28. Reinhart, Carmen & Ostry, Jonathan, 1991. "Private Saving and Terms of Trade Shocks," MPRA Paper 13716, University Library of Munich, Germany.
    29. Michael J. Boskin & Marc Robinson & Alan Huber, 1989. "Government Saving, Capital Formation, and Wealth in the United States, 1947-85," NBER Chapters,in: The Measurement of Saving, Investment, and Wealth, pages 287-356 National Bureau of Economic Research, Inc.
    30. Schechtman, Jack, 1976. "An income fluctuation problem," Journal of Economic Theory, Elsevier, vol. 12(2), pages 218-241, April.
    31. Reinhart, Carmen & Ogaki, Masao & Ostry, Jonathan, 1995. "Saving behavior in low- and middle-income developing countries," MPRA Paper 13757, University Library of Munich, Germany.
    32. Argimon, Isabel & Roldan, JoseMaria, 1994. "Saving, investment and international capital mobility in EC countries," European Economic Review, Elsevier, vol. 38(1), pages 59-67, January.
    33. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, January.
    34. Flavin, Marjorie A, 1981. "The Adjustment of Consumption to Changing Expectations about Future Income," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 974-1009, October.
    35. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    36. Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January.
    37. Hansen, Lars Peter & Singleton, Kenneth J, 1982. "Generalized Instrumental Variables Estimation of Nonlinear Rational Expectations Models," Econometrica, Econometric Society, vol. 50(5), pages 1269-1286, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. World Bank, 2006. "Repositioning Nutrition as Central to Development : A Strategy for Large Scale Action," World Bank Publications, The World Bank, number 7409.
    2. Umali-Deininger, Dina L. & Deininger, Klaus W., 2001. "Towards greater food security for India's poor: balancing government intervention and private competition," Agricultural Economics, Blackwell, pages 321-335.
    3. A. Ganesh-Kumar & Ashok Gulati & Ralph Cummings & Jr., 2008. "Reforming Foodgrains Management : Achieving Food Security with Cost-Effectiveness," Development Economics Working Papers 22152, East Asian Bureau of Economic Research.
    4. Jos Mooij, 1999. "Food policy in India: the importance of electoral politics in policy implementation," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(4), pages 625-636.
    5. Ravallion, Martin, 1999. "Appraising Workfare," World Bank Research Observer, World Bank Group, vol. 14(1), pages 31-48, February.
    6. Amita Shah & Saroj Kumar Nayak & Bipin Das, 2010. "Remoteness and Chronic Poverty in a Forest Region of Southern Orissa: A Tale of Entitlement Failure and State Apathy," Working Papers id:3034, eSocialSciences.
    7. Lanjouw, Peter & Ravallion, Martin, 1998. "Benefit incidence and the timing of program capture," Policy Research Working Paper Series 1956, The World Bank.
    8. World Bank, 2003. "India : Sustaining Reform, Reducing Poverty," World Bank Other Operational Studies 14617, The World Bank.
    9. World Bank, 2010. "Egypt, Arab Republic of - Food Subsidies : Benefit Incidence and Leakages," World Bank Other Operational Studies 2913, The World Bank.
    10. Ravallion, Martin, 1998. "Appraising workfare programs," Policy Research Working Paper Series 1955, The World Bank.
    11. Jha, Raghbendra & Bhattacharyya, Sambit & Gaiha, Raghav, 2011. "Social safety nets and nutrient deprivation: An analysis of the National Rural Employment Guarantee Program and the Public Distribution System in India," Journal of Asian Economics, Elsevier, vol. 22(2), pages 189-201, April.
    12. Merlinda D. Ingco, 2003. "Agriculture, Trade, and the WTO in South Asia," World Bank Publications, The World Bank, number 15072.
    13. Nugent, Jeffrey B. & Sarma, C. V. S. K., 2002. "The three E's--efficiency, equity, and environmental protection--in search of "win-win-win" policies: A CGE analysis of India," Journal of Policy Modeling, Elsevier, vol. 24(1), pages 19-50, March.
    14. Chalasani, Satvika, 2012. "Understanding wealth-based inequalities in child health in India: A decomposition approach," Social Science & Medicine, Elsevier, vol. 75(12), pages 2160-2169.
    15. Dorosh, Paul A., 2001. "Trade Liberalization and National Food Security: Rice Trade between Bangladesh and India," World Development, Elsevier, vol. 29(4), pages 673-689, April.
    16. Masiero, Silvia, 2015. "Redesigning the Indian Food Security System through E-Governance: The Case of Kerala," World Development, Elsevier, vol. 67(C), pages 126-137.
    17. World Bank, 2002. "India : Power Sector Reform and the Poor," World Bank Other Operational Studies 15286, The World Bank.
    18. Deb, Surajit, 2010. "The Grain Management in Andhra Pradesh: Scope for Reforms," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 65(2).
    19. David Coady, 2015. "Designing and Evaluating Social Safety Nets: Theory, Evidence, and Policy Conclusions," Working Papers id:7496, eSocialSciences.
    20. Dev, S. Mahendra & Ravi, C. & Viswanathan, Brinda & Gulati, Ashok & Ramachander, Sangamitra, 2004. "Economic liberalisation targeted programmes and household food security," MTID discussion papers 68, International Food Policy Research Institute (IFPRI).
    21. Coady, David P., 2004. "Designing and evaluating social safety nets," FCND discussion papers 172, International Food Policy Research Institute (IFPRI).
    22. Tarozzi, Alessandro, 2005. "The Indian Public Distribution System as provider of food security: Evidence from child nutrition in Andhra Pradesh," European Economic Review, Elsevier, vol. 49(5), pages 1305-1330, July.
    23. Srinivasan, T. N., 2000. "Poverty and undernutrition in South Asia," Food Policy, Elsevier, vol. 25(3), pages 269-282, June.

    More about this item

    Keywords

    INCOME ; FOOD ; SUPPLY;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fth:wobadi:380. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel). General contact details of provider: http://edirc.repec.org/data/wrldbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.